By Sam Boughedda
Investing.com — General Motors Company (NYSE:GM) is to invest more than $7 billion in four Michigan manufacturing sites, as the company looks to boost its battery and electric vehicle manufacturing capabilities.
The investment will create 4,000 new jobs and retain 1,000. It includes the construction of a new Ultium Cells battery cell plant with LG Energy in Lansing and the conversion of GM's assembly plant in Orion Township to produce the Chevrolet Silverado EV and the electric GMC Sierra. The Orion assembly plant is scheduled to build full-size electric pickups.
In addition, the Lansing Delta Township Assembly is receiving investment for the production of the Chevrolet Traverse and Buick Enclave, while the Lansing Grand River Assembly plant will be upgraded.
According to Bloomberg, the Michigan Economic Development Corporation gave GM a "$600 million grant from state funds, $158 million in total tax breaks, $66 million in infrastructure grants and nearly $937 million in lower electric and water rates over 20 years."
Mary Barra, GM's chair and CEO said: "Today we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S., and our North American EV production capacity."
GM's investment is part of their plan to become the EV market leader in North America by 2025. The investment will support an increase in total full-size electric truck production capacity to 600,000 trucks, while they aim to have more than 1 million units of electric vehicle capacity in North America by the end of 2025.
GM shares are down 1.3% Tuesday.